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If you’re running a trade business in NSW, you’ve likely felt the squeeze over the past year. Material costs are still high, skilled labour is harder to find (and more expensive when you do), and insurance premiums seem to go up every renewal. Yet here you are, charging the same rates you did 18 months ago because you’re worried about losing work.
Sound familiar?
Here’s the thing: your clients expect quality work, and quality costs money. If you’re not adjusting your prices to reflect the real cost of doing business in 2026, you’re not just leaving money on the table, you’re putting your business’ profit margin at risk. The good news? With the right approach, you can raise your prices without watching your client list disappear.
Before we get into the how, let’s talk about why so many builders are undercharging in the first place.
You started too cheap. When you first went out on your own, you probably undercut the competition just to get runs on the board. Fair enough. But years later, you’re still charging those same rates even though you’re now far more experienced, efficient, and reliable.
You’re worried about being “too expensive.” The fear of losing work is real. But here’s what most builders don’t realise: competing on price alone attracts the worst clients. The ones who haggle, don’t pay on time, and complain about every little thing. Quality clients understand that quality work costs money.
You don’t know your numbers. If you don’t know your true costs – labour, materials, overheads, superannuation, insurance, vehicle expenses – you’re guessing. And guessing rarely works in your favour.
You haven’t increased prices in years. Even if your costs are going up 5-10% each year, many builders haven’t adjusted their pricing to match. Over a few years, that gap becomes massive.
All of this is fixable though. And it starts with understanding what your work is actually worth.
Most builders lose pricing conversations before they even start because they haven’t laid the groundwork. If a client doesn’t understand what sets you apart, they’ll compare you purely on price. And that’s a race to the bottom.
Before you even talk numbers, make sure your client understands what they’re getting with you:
Your experience and track record. How many years have you been doing this? What similar projects have you completed? Do you have references or a portfolio?
Your reliability and professionalism. Do you turn up on time? Communicate clearly? Keep the site clean? These things matter more than most builders realise.
The quality of your work. What materials do you use? Do you go the extra mile to get details right? Can you point to examples of your craftsmanship?
Your systems and guarantees. Do you have insurance? A solid warranty? Clear contracts and invoicing?
When clients see the value you bring beyond just swinging a hammer, they’re far less likely to balk at your prices.
You can’t price confidently if you don’t know what it actually costs to run your business. This isn’t just about how much your materials cost or what you pay your apprentice. It’s the full picture.
Sit down with your books (or get your bookkeeper to help) and work out your true hourly rate. Factor in everything: wages, super, insurance, tools, vehicle costs, phone bills, software subscriptions, marketing, accounting fees – the lot. Don’t forget to pay yourself properly. You’re not just a tradie anymore; you’re a business owner.
Once you know your costs, add your desired profit margin. If you’re not making at least 20% profit on each job, you’re working too hard for too little. Remember, profit isn’t greed – it’s what keeps your business afloat when things go quiet, allows you to invest in better tools and training, and gives you the financial breathing room to actually enjoy running your business.
If you’re consistently losing money on jobs and can’t figure out why, you might benefit from understanding how to stop losing money when building.
Ring around to other builders and tradies in your area (the ones you’re mates with) and get a feel for what they’re charging. Look at online quotes if you can find them. You’re not trying to be the cheapest, you’re trying to be competitive whilst reflecting the quality of your work.
If you’re consistently producing better work than the bloke down the road, you should be charging more. Understanding your profit margins properly is key to getting this right.
Right, so you’ve done your homework. You know your numbers, you’ve researched the market, and you’re confident in the value you provide. Now it’s time to actually quote those prices. This is where most builders freeze up.
We know that when it comes time to say the number out loud, panic can set in. “What if they think it’s too much? What if they go with someone cheaper? What if I lose the job?”
So you discount before they even ask. Or worse, you apologise while presenting it.
Clients don’t just respond to the number – they respond to how you present it.
If you sound nervous, hesitant, or apologetic, they immediately assume the price is inflated or negotiable. Your discomfort becomes their doubt.
If you present calmly and matter-of-factly, they assume the price is fair and standard. Your confidence becomes their confidence.
Think about it: when you go to a mechanic and they tell you the service will cost $800, do they sound apologetic? No. They state it clearly because that’s what it costs. You don’t question it because they don’t give you a reason to.
Your pricing deserves the same treatment.
Here’s the critical part: always present your quote in person.
Email quotes get compared side-by-side with cheaper competitors in a spreadsheet. Phone quotes lack the rapport and credibility of face-to-face conversation.
In-person presentations give you the opportunity to build trust, explain value, and read the client’s reactions in real time.
When you sit down with a client to present your quote:
“Thanks for having me out to look at the project. Based on what we’ve discussed and what I’ve seen, the total for this job is $X,XXX. That includes [brief overview of scope]. Now let me walk you through exactly what you’re getting…”
Then you explain the scope, the quality, the timeline, and what sets your work apart. You’re not just throwing a number at them – you’re showing them the value.
Notice what’s missing? Apologies. Justifications. Nervous rambling. You’re not defending the price – you’re stating it.
Even with all the preparation in the world, some clients will still push back on your pricing. Here’s how to handle it.
“That’s more than I expected.”
Your response: “I understand. Can I walk you through what’s included in that price? I want to make sure you’re comparing apples with apples.”
Then break down the scope, materials, timeline, and any extras you’re including. Often, clients don’t realise what goes into a job until you spell it out.
“I’ve had a cheaper quote from someone else.”
Your response: “That’s fair – there are always different price points in the market. Can I ask what their quote included? I want to make sure you’re getting the same level of quality and service.”
This opens up a conversation about why your quote might be higher – better materials, more thorough prep work, insurance, warranties, or simply more experience.
“Can you do it for less?”
Your response: “I’ve priced this job based on the quality and service I deliver. If budget’s a concern, we can look at adjusting the scope – maybe using different materials or scaling back on certain elements. But I won’t compromise on the quality of my work.”
This shows you’re flexible without devaluing your work. It also puts the ball back in their court to decide what they’re willing to trade off.
Here’s a hard truth: not every client is the right fit for your business. If someone’s only concern is getting the cheapest possible price, they’re probably going to be a nightmare to work with.
Clients who constantly haggle, question every line item, or compare you to dodgy operators who cut corners aren’t worth the headache. Walking away from these jobs is one of the smartest business decisions you can make.
You have limited time and energy. Spend it on clients who value your work, pay on time, and respect your expertise. Those are the clients who’ll refer you to others and keep your business growing.
At the end of the day, pricing isn’t just about covering your costs. It’s about building a sustainable business that gives you the income, freedom, and lifestyle you deserve.
If you’re constantly stressed about money, working long hours for peanuts, or feeling like you’re on a hamster wheel, it’s time to rethink your pricing strategy. You didn’t go into business for yourself to work harder for less. You did it to take control of your future.
Increasing your prices isn’t greedy – it’s smart business. It allows you to invest in better tools, hire quality staff, take time off when you need it, and build a business that works for you, not the other way around.
If you’re a NSW builder and you’re ready to stop guessing and start pricing with confidence, The SEE team can help. As a dedicated business coach for builders, we specialise in helping tradies like you understand their numbers, position their value, and grow profitable businesses.